DCIT CENTRAL CIRCLE-4, NEW DELHI vs. MG HOUSING PVT LTD., NEW DELHI

Identical issues are raised in both the appeals and hence, they are taken up together and disposed of by this common order for the sake of convenience.

In respect of appeal for AY 2016-17, the only issue to be decided is as to whether the ld CIT(A) was justified in deleting the disallowance made u/s 40(a)(ia) of the Act in respect of payment made by the assessee to HUDA.

We have heard the rival submissions and perused the material available on record. At the outset, the ld AR before us fairly conceded that this issue is decided against the assessee by the decision of the Hon’ble Jurisdictional High Court reported in 462 ITR 326 (Del). However, the ld AR submitted before us that the assessee files Rule 27 petition under ITAT Rules challenging the validity of reassessment proceedings both on assumption of jurisdiction on the legality of the reassessment order for want of Document Identification Number (DIN) in the assessment order.

The grounds raised in the Rule 27 petition are legal in nature and does not require any factual verification and hence, they are admitted. We find that the validity of reassessment proceedings was challenged by the assessee before ld CIT(A) also. The ld CIT(A) granted relief to the assessee on merits and held that the adjudication of other grounds need not be made. Since, no finding has been given by the ld CIT(A) on the legal issue raised by the assessee, the Bench deems it fit and appropriate to restore these grounds raised under Rule 27 petition to the file of the ld CIT(A) for de novo adjudication in accordance with law. Accordingly, the appeal of the revenue for AY 2016-17 is restored to the file of the ld CIT(A) and allowed for statistical purposes.

Appeal for AY 2017-18 is having tax effect of Rs. 58,33,446/- as per Form-36 filed by the revenue. Hence the same falls below the threshold monetary limit enabling the revenue to prefer appeal before the Tribunal & 213/Del/2023 M/s. MG Housing Pvt Ltd in view of the CBDT Circular No.09/2024 dated 17/09/2024. Hence, the appeal of the revenue is dismissed as not maintainable.